The integrated AVIVO video processing engine provides hardware acceleration for MPEG-2, MPEG-4, H.264 and WMV9. There’s no mention what H.264 video resolutions the Radeon Xpress 1250 supports, though it may only be limited to 480p like the current Radeon X1300. HDMI 1.1 is supported natively with the Radeon Xpress 1250 for Intel Notebooks while HDCP support requires a separate TMDS transmitter. With the proper TMDS transmitter a Radeon Xpress 1250 for Intel Notebooks solution can support HDMI 1.2. HDMI output capabilities include support for up to 1650Mbps/channel and a 165 MHz pixel clock rate.

In addition to HDMI other video output methods such as VGA and TV-out. There’s also support for dual independent displays for multi-monitor goodness. An integrated TV encoder provides the TV-out capabilities. The internal TV encoder is based on ATI’s Xilleon set top box solution and delivers Macrovision 7.1 copy protection with YPbPr component video output. Resolutions of 480i, 480p, 576i, 576p, 720p and 1080i are supported via component. DVI is also supported with an external TMDS transmitter much like HDMI support.

ATI’s Radeon Xpress 1250 for Intel Notebooks uses a unified memory architecture which allocates some system memory for a video buffer. The minimum amount of allocated memory is 16MB while the maximum is 512MB. As far as system memory goes a maximum of 16GB of DDR2 is supported in 400, 533, 667 and 800 MHz flavors. There’s no mention of dual-channel memory support though.

For manufacturers that wish to implement an external graphics card the Radeon Xpress 1250 for Intel Notebooks has one PCI Express x16 slot that’s fully compliant with PCI Express 1.1a for expansion capabilities. ATI expects manufacturers to pair the Radeon Xpress 1250 with its SB600 south bridge for 10 USB 2.0, four SATA II, one ATA133 ports, high definition audio and PCI.

As the Radeon Xpress 1250 for Intel Notebooks is a notebook chipset it has plenty of power management features. Features such as ATI’s PowerOnDemand, PowerExpress, PowerPlay and new PowerShift features are supported.

Integrated graphics don't work (Intel at least) with half the games sites want to test :P
Also, websites DO do benchmarks with integrated graphics. Anandtech is one such site.
They did a review of the Geforce 6150 chipset which has an integrated nVidia graphics core, and compared it to low end graphics cards.

The reason Intel itegrated video doesn't work for most games is due to Intel not having true DX 9 support in hardware. Being able to do something with software emulation or work around hardware limitations might be good for this issue, but since most games seem to look for proper hardware support for DX 9, Intel video fails miserably.

ATI and NVIDIA have avoided Intel's mistakes, and make moble parts that have full DX 9 support in hardware, even if they arn't going to be as fast as what you can get on a desktop.